Iran Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2023-2027

Iran Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2023-2027

Summary

GlobalData expects the Iranian construction industry to record marginal growth of 0.5% in real terms in 2023, following an annual decline of 2.5% in 2022. The recovery in the industry is supported by the public and private investments in the manufacturing, energy and infrastructure projects. According to the Statistical Centre of Iran (SCI), the construction industry’s value add rose by 4.7% year on year (YoY) in Q2 2023, preceded by Y-o-Y decline of 3.7% in Q1 2023 and 4.6% in Q4 2022. The Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) is planning to boost investment in the construction industry by encouraging private investors to participate in the implementation of huge infrastructure projects. According to the Central Bank of Iran (CBI), in the first seven months of Iranian calendar year (March 21, 2023-October 22, 2023) a total of IRR28.47 quadrillion ($56 billion) bank loans were provided to different economic sectors, an increase of 23.9% compared to the same period of 2022.

Over the remainder of the forecast period, the construction industry’s output is expected to record an annual average growth of 3.4%, between 2024 and 2027, supported by the increase in exports, and investment in the petrochemical industry, energy, and housing sectors. In November 2023, Iran’s National Petrochemical Company (NPC) announced its plans to invest IRR241.9 trillion ($4.2 billion) to implement domestic projects in the petrochemical industry in the country by 2025. The NPC aims to reach a production capacity of 200 million tons of petrochemical by 2033 and it also identified 100 projects worth IRR4 quadrillion ($70 billion) to be developed across the country. One of Iran government’s initiative named ‘’National Housing Movement’’ will help the residential construction sector by building four million residential units for the low-income individuals by 2026. In November 2023, various investment deals worth IRR71.4 trillion ($1.24 billion) were signed in different sectors, on the president’s visit to Chaharmahal and Bakhtiari Province. As part of plans to increase the renewable energy share in the country’s total energy mix, the government finalized a 15GW solar power generation plan in October 2023. The proposed plan constitutes the construction of IRR478 trillion ($8.3 billion) worth solar power plants in three different stages, in association with the private sector. In total, the Energy Ministry of Iran is aiming to add 10,000MW of renewable power generation capacity by 2025.

The report provides detailed market analysis, information and insights into the Iranian construction industry, including -

• The Iranian construction industry's growth prospects by market, project type and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Iranian construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Iran. It provides -

• Historical (2018–2022) and forecast (2023–2027) valuations of the construction industry in Iran, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
• Assess market growth potential at a micro-level with over 600 time-series data forecasts.
• Understand the latest industry and market trends.
• Formulate and validate strategy using GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.